CMHC: OUT OF WHACK HOME PRICES GROWING IN CANADIAN CITIES

Apr 27, 2016

By Bob Komsic

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There’s mounting evidence house prices in a number of Canadians cities are out of whack with incomes and other economic factors.
Cda Housing
According to its just released quarterly report, Canada Mortgage and Housing Corporation, there’s evidence of ”overvaluation” in nine of 15 markets studied.
Chief economist Bob Dugan says ”Overvaluation and overbuilding remain the most prevalent problematic conditions observed across the 15 centres.”
Overvaluation’s when home prices are so high they’re not fully supported by economic fundamentals like family incomes, mortgage rates and population growth.
The housing agency says evidence prices are overvalued in Toronto remain strong.
Overbuilding in the market is weak but CMHC warns about potentially problematic conditions in the condo sector.
TO Condos
Dugan says ”We do have some concerns about the high inventory of completed and unsold condominium apartments.”
In Hamilton, overvaluation increased from weak to moderate.
It remained moderate in Montreal, Regina, Calgary and Edmonton and grew from moderate to strong in Vancouver and Saskatoon. 
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